Poland Rules Out Bitcoin for Currency Reserves

National Bank of Poland Rules Out Bitcoin in Currency Reserves

The National Bank of Poland (NBP) has firmly ruled out the possibility of incorporating Bitcoin into its currency reserves, citing significant security concerns. According to a recent press conference, NBP President and Monetary Policy Council Chairman Adam Glapiński emphasized the necessity of absolute security in reserve assets.

Glapiński stated, “We will not consider Bitcoin under any circumstances, as reserves must be absolutely secure.” This stance is not surprising, given the NBP’s historical position on cryptocurrencies.

Security Concerns and Volatility

The NBP’s caution towards Bitcoin is primarily driven by its well-documented volatility and unpredictability. The regulator’s chief pointed to these factors as the primary reasons for excluding Bitcoin from the nation’s reserves.

Currently, the NBP’s reserves are predominantly held in gold, U.S. dollars, and euros, with other assets playing a minor role. Glapiński highlighted the strategic timing of Poland’s gold acquisitions, noting that their value has significantly increased amid global economic uncertainties.

Historical Position on Cryptocurrencies

In a 2017 statement, the NBP and the Financial Supervision Authority warned of the risks associated with virtual currencies, including potential loss due to theft, lack of guarantees, and high price volatility.

They reiterated that virtual currencies are neither issued nor guaranteed by the central bank and do not meet the criteria for legal tender. This stance is consistent with the NBP’s current position on Bitcoin.

Key Takeaways

• The National Bank of Poland will not consider Bitcoin for its currency reserves due to security concerns.
• The NBP’s reserves are predominantly held in gold, U.S. dollars, and euros.
• The regulator’s chief cited Bitcoin’s volatility and unpredictability as primary reasons for its exclusion.

“We will not consider Bitcoin under any circumstances, as reserves must be absolutely secure.” – Adam Glapiński, NBP President and Monetary Policy Council Chairman

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